What the new AWS European Sovereign Cloud means for enterprises

AWS has announced the general availability of its European Sovereign Cloud, touting plans to expand the service across the continent.

The new scheme will offer European-based customers a fully independent cloud located entirely within the EU. This means enterprise data will be hosted and stored solely in the region and kept separate from other AWS Regions worldwide.

The service will be operated out of Germany, according to AWS, and underpinned by more than €7.8 billion in investment.

AWS said it plans to expand options to other European countries as part of the move, with new AWS Local Zones earmarked for Belgium, Portugal, and the Netherlands.

“The AWS European Sovereign Cloud’s unique approach provides the only fully featured, independently operated sovereign cloud backed by strong technical controls, sovereign assurances, and legal protections designed to meet the needs of European governments and enterprises for sensitive data,” the hyperscaler said in a statement.

The move by AWS comes amidst an intense focus on sovereign cloud for European customers. Spurred on by customer demands and regulatory scrutiny, a host of major cloud computing providers have launched - or are in the process of rolling out - sovereign cloud services.

Last year, for example, Microsoft launched a new sovereign cloud scheme covering private and public cloud, along with the launch of dedicated National Partner Clouds in France and Germany.

So what can customers expect from the new AWS Sovereign Cloud project?

What to expect from the AWS European Sovereign Cloud

First and foremost, the new sovereign cloud setup is “physically and logically separate” from other global AWS Regions, enabling European enterprises to meet stringent regulatory requirements on data residency and privacy.

Enterprises operating on the sovereign cloud will have “full control over where their data is stored”, the company said. This includes complete control over all metadata they create – down to roles, permissions, resource labels, and configurations.

Control of sovereign Identity and Access Management (IAM) data, billing, and usage metering systems is also guaranteed.

Crucially, AWS said the new setup places a strong focus on “operational autonomy”, meaning it’s operated “exclusively” by EU residents and has no dependence on non-EU infrastructure.

“Its unique design enables it to continue operations indefinitely,” the hyperscaler explained. “Even in the event of a communications disruption with the rest of the world”.

This aspect of the sovereign cloud scheme is noteworthy, particularly amidst growing concerns about potential US overreach and frosty transatlantic political relationships.

Last year, Microsoft was forced to reassure customers it would take legal action against the US government in the event the Trump administration pressured providers to shut down services in Europe.

The comments from Microsoft President Brad Smith followed the signing of a memorandum in early 2025 to defend US companies from “overseas extortion” in response to the EU Digital Markets Act (DMA).

Reliance on US tech providers has become a key concern for IT leaders in both the UK and EU over the last two years. A study from Civo in May 2025 showed 60% of respondents think the UK government should cut its use of US cloud services over data protection and privacy concerns.

AWS said that in the event of “communications disruption”, AWS employees located in the EU will have “independent access to a replica of the source code needed” to maintain the service.

Security and compliance gains

Elsewhere, AWS said the new sovereign cloud gives enterprises access to “leading technical and compliance controls”. These controls come in the form of the AWS Nitro System, which allows enterprises to enforce strict security boundaries and access restrictions for data held in the region.

“Nobody, including AWS employees, can access customer data running in Amazon EC2,” the company said.

“AWS also provides advanced encryption, key management services, and hardware security modules that customers can use to further protect their content. Encrypted content is rendered useless without the applicable decryption keys.”

The hyperscaler has also launched a new “Sovereignty Reference Framework”, which aims to provide enterprise customers with information and guidance on sovereignty requirements in the region, helping streamline regulatory compliance.

“Customers can use the third-party validated ESC-SRF auditor report to demonstrate clear and enforceable sovereignty assurances,” AWS said.

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